Krishna Institute of Medical Sciences (KIMS) has outlined an ambitious growth strategy centered on expanding its healthcare network and optimizing operations across multiple states in India. The company is making significant strides in establishing new facilities and enhancing its existing services to strengthen its market position.

Expansion Plans and New Facilities

KIMS plans to establish a new 700+ bed facility in Bengaluru, marking a significant expansion into Karnataka. This move is part of a broader strategy to increase the company's presence in tier-2 cities across Andhra Pradesh and Telangana. The expansion plan includes:

• A new 361-bed facility in Bengaluru (KIMS PES) scheduled to commence operations
• A 50-bed expansion in Ongole, focusing on a new Cancer Centre
• A 250-bed expansion in Anantapur, including a Cancer Centre and Mother & Child facilities
• A 550-bed expansion of the Kondapur facility
• A new 350-bed facility in Rajahmundry

These expansions are expected to significantly increase KIMS' bed capacity and service offerings across multiple regions.

Financial Performance and Growth Targets

KIMS is targeting double-digit revenue growth through various strategies:

• Increasing Average Revenue Per Occupied Bed (ARPOB)
• Optimizing its specialty mix
• Enhancing operational leverage
• Retaining and attracting top medical talent
• Pursuing strategic acquisitions to strengthen its market leadership position

The company's recent financial performance shows:

While the company has shown strong revenue growth, there has been a decrease in EBITDA and PAT, which may be attributed to expansion costs and investments in new facilities.

Operational Highlights

KIMS has demonstrated impressive operational metrics:

• Increased IP volume by 15.3% YoY to 64,288
• OP volume grew by 25.1% YoY to 592,725
• ARPOB (Average Revenue Per Occupied Bed) improved by 9.8% YoY to ₹42,016

Strategic Initiatives

The company is focusing on several key areas to drive growth:

1. Tertiary Care Expansion: Launching advanced specialties such as Paediatric Cardiac Surgery, ECMO, and Liver Transplant in various locations.

2. Technology Investments: Implementing state-of-the-art medical technologies like robotic surgery systems, advanced imaging equipment, and specialized treatment facilities.

3. Talent Acquisition: Onboarding senior specialists in high-revenue departments and expanding clinical teams across multiple specialties.

4. Geographic Expansion: Strengthening presence in existing markets and entering new regions through greenfield projects and strategic partnerships.

5. Service Diversification: Introducing new services such as transplant programs, cancer care centers, and mother & child specialties to cater to a wider range of healthcare needs.

KIMS' expansion strategy and focus on enhancing its service offerings position the company for potential growth. However, investors should note that the current investments in expansion may impact short-term profitability as new facilities ramp up operations.

As KIMS continues to execute its growth plans, it will be crucial to monitor how effectively the company manages its expansion while maintaining quality of care and financial performance across its growing network of hospitals.

Krishna Institute of Medical Sciences (KIMS Hospitals), a leading healthcare provider in South India, has reported a robust 23.3% year-on-year growth in total revenue for the second quarter of fiscal year 2026. The company's financial results, released on November 7, 2025, showcase its continued expansion and operational performance across multiple states.

Financial Highlights

• Total revenue reached INR 9,649.00 million in Q2 FY26, up 23.3% year-on-year and 9.8% quarter-on-quarter.
• EBITDA stood at INR 2,082.00 million, with a margin of 21.6%.
• Profit After Tax (PAT) was INR 720.00 million for the quarter.

Operational Performance

KIMS Hospitals demonstrated strong operational metrics:

• Inpatient (IP) volume increased by 15.3% year-on-year to 64,288.
• Outpatient (OP) volume grew by 25.1% to 592,725.
• Average Revenue Per Operating Bed (ARPOB) improved by 9.8% to INR 42,016.00.

Expansion and Growth Initiatives

Dr. Abhinay Bollineni, CEO of KIMS Hospitals, commented on the quarter's performance: "Q2 FY26 has been a busy quarter for us. We have seen patient footfalls steadily increasing at all our centers. I am particularly pleased that our newly opened unit at Thane has seen very good traction and completed 1000 surgeries in less than 6 months of operations. Our Bangalore unit at Mahadevpura also went live this quarter."

The company's expansion strategy includes:

1. Increasing bed capacity from 5,179 in FY25 to 6,114 in Q2 FY26.
2. Launching new hospitals in Hyderabad, Bengaluru, and Kerala.
3. Targeting 18-20% annual growth through specialty diversification and digital health initiatives.

Regional Performance

The negative EBITDA margins in Maharashtra and Karnataka are likely due to the ramp-up phase of new hospitals in these regions.

Strategic Developments

KIMS Hospitals is focusing on:

1. Operational efficiency and clinical excellence to achieve sustainable margin growth.
2. Strengthening its position in tertiary and quaternary healthcare services.
3. Expanding its network to 25 hospitals with over 8,000 beds across five states.

Outlook

Dr. B. Bhaskar Rao, CMD of KIMS Hospitals, expressed optimism about the company's future: "I am optimistic that the remaining half of FY26 will help us achieve our targets set."

As KIMS Hospitals continues its expansion across South India, the company remains committed to providing affordable, high-quality healthcare services while driving growth through strategic initiatives and operational improvements.